Process and apparatus for conducting auctions over electronic networks

ABSTRACT

An apparatus and process for conducting auctions, specifically municipal bond auctions, over electronic networks, particularly the Internet, is disclosed. The auctioneer maintains a web site from which information about bonds to be auctioned can be obtained. A user participates in the auction by accessing the web site via a conventional Internet browser and is led through a sequence of screens that perform the functions of verifying the user&#39;s identity, assisting the user in preparing a bid, verifying that the bid conforms to the rules of the auction, displaying to the user during the course of the auction selected bid information regarding bids received and informing the bidder how much time remains in the auction. The user may be given the option of confirming the accuracy of his bid before submitting the bid. The auctioneer is able to review bidding history, determine the winner and notify the winner over the network, and display selected auction results to bidders and observers over the network.

This application is a continuation of application Ser. No. 09/666,559,filed Sep. 21, 2000, now abandoned which is a continuation ofapplication Ser. No. 09/087,574, filed May 29, 1998, now U.S. Pat. No.6,161,099 which claims the benefit of provisional Application No.60/047,876, filed May 29, 1997. The entire content of these are herebyincorporated by reference in this application.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates to a method of conducting auctions,particularly original issuer municipal bond auctions, over electronicnetworks, particularly the Internet.

2. Description of the Prior Art

A conventional auction is a prior art process in which bids from biddersare received by an auctioneer for an item to be sold. The bidder whosebid is the highest at the termination of the auction (the “successfulbidder”) becomes the purchaser of the item.

Auctions may be conducted in a variety of ways. In the “silentreal-time” auctions bidders are made aware at all times of the magnitudeof the current highest bid but do not know the identity of the highestbidder. So long as the auction is still in progress, the bidders mayincrease their bids. Silent real-time auctions generally end at aspecific announced time and any bid submitted by that time is consideredin determining the successful bidder.

Another style is the “public real-time” auction, in which bidders aremade aware both of the current highest bid and the identity of thebidder. Public real-time auctions are conventionally held by open verbaloutcry and are terminated by the fall of the auctioneer's hammer afterwarning is given to the bidders of the imminent close of the auction.

Other types of auctions are known. In a sealed-bid auction, bidders aregiven the chance to make only one secret bid. They do not know eitherthe current highest bid or the identity of the current highest bidder.In a “silent and blind auction” the specific bids and identity of thebidders is maintained in secret until close of the auction. Yet othertypes of auctions differ from the foregoing in that offers to sell maybe made by the auctioneer in decreasing price increments, the firstbuyer to accept a bid being the winner. This type of auction is alsoknown as a “Dutch flower auction.” In another type, the winner is theparty who makes the highest bid, but he pays the amount bid by thesecond-highest bidder. Many variations on these auctions are also known.

It is a drawback of the above types of auctions that the bidders musteither gather together in the same physical location with the auctioneeror remain in contact with the auctioneer by telephone or videoconference facility. Bidders who are in the physical presence of theauctioneer may have an advantage because they are able to respond to theauctioneer's reaction to a bid more rapidly than those at remotelocations are.

A variety of electronic auctioning and trading systems have beendeveloped, including electronic auction systems relating to financialinstruments. Examples of these can be seen in U.S. Pat. Nos. 5,640,569to Miller et al, 5,375,055 to Togher et al, 5,243,515 to Lee, 5,136,501and 5,077,665 to Silverman, et al, 4,980,826 and 4,903,201 to Wagner,4,789,928 to Fujisaki and 3,581,072 to Nymeyer.

The Miller patent is directed to an electronic “auctioning” systemspecifically directed to allocating computer resources such astransmission bandwidth of a multiplicity of network linksinterconnecting the users. The system uses a type of second price sealedbid method. The system allocates resources to maximum declared valuesbased upon the second highest bid such that successful bidders arecharged what is referred to as an opportunity costs for the goods.

The Togher et al patent discloses a credit management system for anelectronic brokerage system. The brokerage system disclosed involves acommunications network for facilitating the buying and selling of largeblocks of foreign currency. In particular the system provides that eachbid or offer for bid for a particular type of financial instrument isprescreened by the system for compatibility with limited creditinformation. The system identifies that, at least in currency, theresulting price may be based upon a composite of bids for small sizes orlots of the currency in question.

The Lee patent discloses a secure teleprocessing bidding system relatingto a secret bidding process. The system maintains the bids secret fromother bidders until after the period for bidding is closed. The systemis intended to eliminate bid procedure violations and provides anelectronic record of the bids received.

The Silverman et al patents disclose an electronic trade matching systemfor trading instruments in which bids are automatically matched againstoffers for the given trading instruments. The system uses a network toconnect the host computer with bidding and offering clients of thesystem.

The Wagner patents disclose a voice actuated futures trading exchange.The system is described as a computerized public outcry exchange systemfor transacting sales of a particular futures commodity contract bymembers of a futures trading exchange wherein bids to purchase or offersto sell the particular commodity are made by members through remoteterminals and the exchange computer automatically matches offers andbids to complete the transaction. The system provides that the offersmay be orally entered into the system.

The Fujisaki patent discloses an auction information transmissionprocessing system that sets up a hierarchical system of host and servercomputers, which are configured to minimize the data transmitted betweencomputers during an auction. The system is designed to allow auctionparticipants to be spread out over a wide area. The system was directedto auctioning of specific items such as used cars.

None of the above described patents are directed to original issuerauctions of financial instruments. With auctions of various financialinstruments there is a significant difference between the originalissuer and subsequent resale of portions of this instrument in thesecondary market. Once in the secondary market the financial instrumentor portions thereof become fungible commodities appropriate for tradingin various trading forums including some of the electronic tradingsystems described above. The present invention is directed to originalissuer auctions, which involve distinctly different issues than thoseassociated with the secondary market.

None of the existing electronic trading or auctioning systems addressesthe needs of original issuer auctions of financial instruments, such asmunicipal bonds. In the domain of original issuer municipal bondauctions, conventionally competitive bids for new municipal bondofferings are submitted to the issuer via fax machine or US mail or inperson and qualified bids must be for all of the bonds in the issue(“all-or-none”). In addition to fax submissions, 21^(st) CenturyMunicipals, Inc. has developed a modem based electronic bid submissionsystem using a computer network and sold under the trademark PARITY. ThePARITY bid submission system allows bidders who have previously obtainedand installed appropriate software to electronically submit bids in anauction over a computer network. The PARITY system is designed to beused together with fax and other bid submission methods during anauction. The PARITY system is designed as a sealed bid system such thatthe bids received are not reviewed until after the auction closes, andthere is no feedback to the bidders during the auction.

In a conventional original issuer municipal bond auction, there is afixed time (e.g. 10:30 a.m., EST) on a predetermined date (“sale date”)that bids must be delivered to the issuer. Because bidders are sensitiveto on-going interest rate movements in the capital markets whilepreparing their bid, they prefer to wait until the last minute beforesubmitting the bid to be as competitive as possible and avoid the riskthat other bidders will learn the details of their bid before thedeadline. This system essentially mimics a sealed bid arrangement inthis respect.

It is a drawback of bids submitted by mail that the bids must besubmitted too far in advance to competitively reflect the marketconditions when the bid is due.

It is a drawback of fax auction methods that faxed bids are transmittedafter the deadline, fax clocks are not set properly and record theincorrect time in fax headers, fax transmission interruptions outsidethe control of the sender and receiver and machine malfunctions such aspaper misfeeds occur.

It is a drawback of in-person bidding methods that bidders havedifficulty locating the place where bids are to be delivered or mayexperience traffic or other delays in submitting bids. Also, because themost frequent participants in competitive bids for new issues arelocated in New York City and the issuers are in other parts of thecountry, it is extremely difficult for many bidders to deliver theirbids in person.

It is a drawback of the PARITY bid submission system that to useelectronic bid submission the bidders must previously obtain and installthe appropriate software, resulting in essentially a closed computernetwork. An additional drawback with the PARITY system is that nofeedback is provided to the bidders. The system incorporates all of thedrawbacks inherent in these other bid submission systems.

It is a drawback of prior art bidding methods for original issuerauctions of financial instruments that frequently bids are not submittedin conformity with issuers' specifications as set forth in a Notice ofSale or similar solicitation document. It is a drawback of fax bidmethods that faxes may not be legible at the receiving end. Theseproblems can create controversy between bidders and embarrass municipalofficials and their financial advisors conducting original issuermunicipal bond auctions. They can also cost the issuer money (e.g. ifthe best bid has to be disqualified as a result of one of thesemalfunctions or mistakes).

Further drawbacks of prior art bidding methods in original issuermunicipal bond auctions are:

-   1. Bidders cannot see bids submitted by other bidders and are thus    precluded from using this information to make their bids more    competitive;-   2. Once having submitted a bid, a bidder is not given an opportunity    to correct or improve their bid in the event it does not conform in    some way to the issuer's bids specifications;-   3. Bidders cannot submit bids for selected bond maturities; bids    must be “all-or-none”; meaning they must purchase every single    maturity in the issue or none of them;-   4. Regional and small underwriters are precluded from submitting    bids because they do not have sufficient capital or desire to    purchase every maturity in an issue (i.e. all-or-none);-   5. Institutional investors and other bidders who are not    underwriters do not submit bids because they desire only selected    maturities rather than all of the bonds in an issue;-   6. There is a delay after bids are submitted and before awarding a    contract to the successful bidder because it is necessary for the    issuer to transcribe the bids into a computer spreadsheet or other    program that computes which bid is the best one; furthermore, it is    usually necessary to resize the principal maturity amounts after    determining the winning bid, which results in further delays before    the sale is made;-   7. There is no effective security mechanism to reassure issuers that    bids submitted via fax or other method are bona fide offers from    qualified bidders;-   8. There is no built-in safeguard that alerts bidders before    submitting their bid when they attempt to make a bid which does not    conform to the issuer's specifications (e.g., exceeding the issuer's    premium or discount limitations, interest rate coupons which are not    multiples of a predetermined percentage, etc.).

The prior art does not disclose a method of conducting original issuermunicipal bond auctions mediated by computer in which the bidders may bedistributed in different physical locations yet by which either a silentreal-time auction or a public real-time auction may be conducted.

SUMMARY OF THE INVENTION

According to one embodiment, the present invention is directed to acomputer implemented process comprised of the steps of: establishingcommunications over a network between an auctioneer's computer and aplurality of bidders' computers; providing information regardingfinancial instruments to be sold to potential bidders; submitting atleast one of a maturity by maturity bid or an all-or-none bid via thebidder's computer; accepting one or more of the submitted bids; anddisplaying the current best bid while the auction is in process.Information in addition to the current best bid which may be displayedincludes the identity of the bidder, showing the status of a pluralityof bidders, or showing a no-bid status on a portion of the financialinstrument.

The present invention also provides for selectively displaying selectedauction and bid status information during the course of the auction tonon-bidding observers of the auction via the network on the observers'computers. This allows for third party observation of the auction inreal time. The present invention can selectively provide informationconcerning the auction to participants and observers from theauctioneer's computer via the network after the closing of the auction.

The present invention also provides for verifying that each bid is inconformance with predetermined bid parameters and gives the bidder anopportunity to review and confirm bids prior to the bids being actuallyrecorded on the auctioneer's computer. The bid verification may includeautomatically refusing acceptance of submitted bids that do not conformto predetermined bid parameters, and providing feedback to the bidder ofa proposed bid by providing the bidder with a summary of the proposedbid prior to bid submission. The present invention also screens biddersvia the network to qualify bidders to submit bids and providesdocumentation of the qualification of the individual bidders.

The present invention includes an electronic bid calculation sheet,which is supplied to the bidder over the network, wherein the electronicbid calculation sheet allows each bidder to prepare proposed bidsincluding calculation of the cost of a proposed bid, and calculation ofthe various components of that cost including commissions, concessions,etc., prior to submission of the bid. The electronic bid calculationsheet is adapted to selectively display the bidder's last submitted bidwithout disturbing proposed bid information on the spreadsheet.

The operation of the present invention includes a plurality of computersthat are connected to an electronic network, in particular the Internet.Each bidder may use their own personal computer. The bidders' computersare provided with commercially available browser software thatcommunicates through the network with an auctioneer's server. Auctionterms and conditions, and a description of the instruments to beauctioned, are broadcast or otherwise made available by the-auctioneer'sserver to the bidders' computers. During the auction the auctioneer'sserver broadcasts or otherwise makes available selected bid informationsuch as bidder status (i.e., leader or not leader), or the currenthighest bid and, if desired, the identity of the current highest bidder.Software on the server, or perhaps on the bidders' computers in a JAVAimplementation, guides the bidders through the bidding process andprovides computational assistance in preparing their bids and comparingthem to the current highest bid. The bidder may prepare a tentative bid,review it and modify it before submitting it. A confirmation step may beimplemented to insure that the bid is correct before it is submitted.When a bid is “submitted”, it is compared with the current highest bid.If the submitted bid is higher than the current highest bid, it becomesthe new current highest bid and, if desired, is made available to allbidders. At the close of the auction, the auctioneer's computer notifiesthe bidders' computers of the successful bid. The auctioneer's computeralso maintains a database of all bids which can be accessed byinterested parties for their own use. Those and other advantages will beclarified in the description of the preferred embodiment together withthe attached figures in which like reference numbers represent likeelements throughout.

BRIEF DESCRIPTION OF THE DRAWINGS

For the present invention to be easily understood and readily practiced,preferred embodiments will now be described, for purposes ofillustration and not limitation, in conjunction with the followingfigures:

FIG. 1 illustrates a network over which the present invention may bepracticed;

FIG. 2 illustrates an example of a home page from one implementation ofthe present invention;

FIG. 3 a is a flow chart illustrating the overall process flow of thepresent invention from a home page;

FIG. 3 b is a flow chart illustrating the overall process flow withrespect to the preparation and submission of a bid;

FIG. 3 c illustrates the options available from an administration menu;

FIG. 4 illustrates a series of questions which may form a portion of theregistration process;

FIG. 5 illustrates an example of a selections page;

FIG. 6 illustrates an example of an observation page;

FIG. 7 illustrates an example of a log-in page;

FIG. 8 illustrates an example of an acknowledgment page;

FIG. 9 illustrates an example of a verification page;

FIGS. 10 and 11 illustrate two examples of bid preparation/submissionpages;

FIG. 12 illustrates an example of an error page;

FIG. 13 illustrates an example of a confirmation page; and

FIGS. 14 and 15 illustrate two examples of administration pages.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

The present invention concerns original issuer municipal bond auctionsin which a municipality (“Issuer”) offers its bonds to purchasers,generally underwriters who resell them to the public. The presentinvention is also applicable to corporate commercial paper, corporatebonds and notes, U.S. Treasury auctions, equity offerings, and, ingeneral, any financial instrument. In a municipal bond auction, themunicipality desires to raise the greatest possible amount of money forits bonds and therefore desires a large number of competitive bidders.Bids in municipal bond auctions may be complex because of the need tobid on a package of multiple bonds having differing principal amountsand maturity dates. Comparing one's prospective bid against the currenthighest bid involves more than a simple comparison of two numbers. It isdifficult to do this comparison rationally in real-time withoutcomputational assistance.

Bonds are offered to underwriters (“bidders”) by means of two officialdocuments prepared by the Issuer: a Notice of Sale and a PreliminaryOffering Statement (“POS” or “Prospectus”). The Notice of Sale describesthe terms of the offering in detail. The POS describes the bonds beingissued in detail, including such terms as the legal authority of theIssuer to issue them, a description of the security being offered to thepurchaser, and the like. The terms of both the Notice of Sale and thePOS are essential to the preparation of a bidder's bid.

In a preferred embodiment; the auction is conducted by an auctioneerhired by the Issuer to solicit and receive bids. As shown schematicallyin FIG. 1, in a preferred embodiment, the auctioneer is provided with acomputer/server 10 connected to a network such as the Internet 12. Theauctioneer maintains a web site on the Internet through the server thatmay be accessed by users. As used herein, the term “user” means anyperson who accesses the auctioneer's web site, including the auctioneer,bidder, Issuer, Issuer's financial advisor or auction administrator. Ina preferred embodiment, each user may use his or her own personalcomputer 14 connected to the Internet 12. Computers 14 are provided withconventional web browsing software to obtain access to the auctioneer'sweb site. A portion of one example of the home page 16 of theauctioneer's website is illustrated in FIG. 2.

The user is presented with a series of screens to guide him through thebidding process, illustrative examples of which are shown throughout thefigures. In a preferred embodiment, the source code implementing thesescreens resides entirely in the auctioneer's computer 10 and isdownloaded as HTML to the user's computer 14 as each screen is accessed.In an alternative embodiment, portions of the source code implementingcertain features remains resident on the user's computer, e.g. in theform of applets written in the JAVA language. In the preferredembodiment, the source code that supports operation of the auctioneer'sweb site is written in HTML (Hypertext Markup Language), PERL 5, andMini SQL (Structured Query Language).

In a preferred embodiment, for security reasons each user must eitherregister or make arrangements in advance with the auctioneer to receivean identification number (“ID”) to obtain access to auction informationand to enter or review bids. Registration is schematically illustratedas elements 18 and 20 in FIG. 3 a.

The applicant's web site, in particular the home page 16, can beaccessed by any interested person using URL http://www.muniauction.com.

The user who “visits” the auctioneer's web site is led through asequence of web pages and may prepare and submit bids by typing entriesand using conventional mouse clicks as in accessing a typical web site.

The site's home page 16, shown in FIG. 2, offers three links, aninformation link 22 a to brochure 24 (FIG. 3 a), a registration link 22b to registration pages 18, 20 (FIG. 3 a) and auction link 22 c to aselections page 26 (FIG. 3 a).

The “Brochure” pages 24 are a description of the electronic auction, whyit is useful, how it works, its benefits to issuers and bidders, specialfeatures and where to call for an on-line demonstration.

The “Registration” pages 18 and 20 contain appropriate forms to becompleted by those interested in submitting bids. A portion of a webpage 28 shown in FIG. 4 may be part of the registration page 18 shown inFIG. 3 a. Parties must register so that their credentials can beverified prior to issuance of security information enabling them to makelegitimate bids. Registration is necessary to prevent unauthorizedpersons from interfering with, or obtaining information about, theauction.

The “Auction” link 22 c of home page 16 leads to the selections page 26from which a user may enter the auction. An example of the selectionspage 26 is shown in FIG. 5.

The selections page 26 lists the bond auctions which are eithercompleted, in progress, or anticipated. The auctions may be trialauctions in which users can view and practice bidding or real auctions.The listing may include the name of issuer, the state where the issueris located, a brief description of the bonds being sold, the size of theissue, the scheduled auction date, and start time. Each possible auctionmay have a group of selections such as “Enter Action” for auctionsupcoming or in progress, “Observe Results” for completed auctions, “ViewNotice of Sale”, View Amendments”, and “View POS”. If the “ObserveResults” option is chosen, the user is directed through branch 30 topage 32 (See FIG. 3 a) in which the user may view the auction resultswhich the issuer chooses to make available. See FIG. 6 for an example ofan observation page 32. For example, the issuer may choose to show onlythe amount and name of winning bidders or may choose to display completebid histories for the auction. Preferably the information to be madeavailable after the auction will be disclosed in advance to the auctionparticipants.

When an upcoming or current auction is selected at selections page 26,the user is directed through current auctions branch 34 to a login page36 (See FIG. 3 a). If the user selects “Enter Auction” for a trialauction, trial auction branch 38 takes the user to login page 40. Thelogin page 40 may appear as shown in FIG. 7.

In the selections page 26, the user is provided with the multiple linkedoptions “View Notice of Sale,” “View Amendments”, etc. Depending uponwhich issue is selected, the corresponding document will be displayed.That is shown collectively as “View Documents” 42 in FIG. 3 a.

The “View Notice of Sale” option causes the complete text of the Noticeof Sale to be displayed to the user. The Notice of Sale is provided tothe auctioneer in advance by the Issuer, typically in machine-readableform, is converted to HTML or Adobe Acrobat, and stored on theauctioneer's web server for access by users.

The “View POS” option takes the user to an acknowledgment page shown inFIG. 8. To view the POS, the user must first acknowledge that the useris eligible to bid. If the user indicates that the user is not eligible,then the user returns to the selections page 26. Selection of the“eligible” option causes the complete text of the Preliminary OfficialStatement for the issue selected to be displayed. The POS is supplied tothe auctioneer typically in machine-readable form by the Issuer,converted to HTML text or Adobe Acrobat, and then stored on theauctioneer's web server for access by users. Because the POS is amulti-page document, the auctioneer may create hypertext links tovarious parts of the POS from the items listed in the related table ofcontents to facilitate quick access by the user to selected portions ofthe document or rapid review and retrieval of information.

A “View Rules of Auction” link (not shown) may be provided which causesa text document stipulating the rules and conventions that all biddersmust acknowledge or agree to abide by when participating in the auction.It also explains how disputes, if any, will be resolved, how bids aresequenced (e.g., first-in, first-out) and processed by the source code,what mathematical formulas and conventions are used to calculate pricesand yields, and how purchase amounts may be altered after the auction toaccommodate re-sizing.

The log-in page 36 is used to ensure that the user is identified and isverified to be legitimate. It requires the user, as a condition toentering the specific auction chosen, to enter its companyidentification number (ID) assigned by the auctioneer and theirpassword, which is predetermined by the user. If the ID number orpassword is not correct as shown at step 44, the user will linkautomatically to an Error message (not shown) explaining that one (orboth) is incorrect and that they should click the BACK button to returnto the log-in page 36. After a correct log-in of a registered user ischecked at step 44, the system checks at step 46 to determine if thisregistered user is admitted or allowed to participate in the selectedauction, and verifies their status at step 48. If properly registeredand admitted, the user is directed to verification page 50.

The verification page 50, an example of one type of which is shown inFIG. 9, is used as a double check on the identity of the user and toverify that the user, if bidding, agrees to abide by the rules of theauction. It contains a list of questions that must be answeredaffirmatively by clicking the “yes” response option after each onebefore the user can proceed to the auction page. If any of the questionsis not answered or answered “no” as verified at step 52, the user willbe linked to an error message 54 identifying the question (or questions)which has not been answered properly and directing the user to eithercontact the Administrator (by e-mail link) for assistance or click theBACK button to return to the verification page 50. The verificationprocedure provides a documented history that the user has reviewed therelevant materials including the Notice of Sale and POS. If anacknowledgement from the user, i.e. answering yes to all the questions,is not received, step 52 prevents the user from participating in theauction.

As shown in FIG. 9, three of the questions contain direct links to theNotice of Sale and Amendments, POS, and Rules of MuniAuction,respectively, which the bidder can view if the bidder has not alreadydone so.

Although not currently implemented, the verification page 50 could alsoallow bidders to select the bid format they would like to use on the bidpreparation and submission page 56 which follows, choosing either toenter the price and coupon combination or coupon and yield combination.

The bid preparation and submission page 56 is an electronic spreadsheet,or bid preparation sheet, representative examples of which are shown inFIGS. 10 and 11 and are labeled “Auction.” The bid preparation andsubmission page 56 displays a schedule of the principal maturity amounts66 and due dates 68 for the issue to be auctioned as well as selectedbid information 70 associated with the bid for each maturity.

The selected bid information 70 is predetermined by the issuer prior tothe auction and is updated continuously throughout the auction. Bydisplaying a current best bid, which is optional, an open bid auctionmay be implemented. The bid status information which is displayed toeach of the users may include, for example, one or more of thefollowing: the yield of a leading bid, the identity of leading bidders,the status of the bidders (i.e., “Leader/Not Leader”), or a “no bid”status on a portion of the financial instrument. Any other appropriateinformation relating to the bids or the auction may also be included.

FIG. 10 illustrates a blank form upon which a user may prepare aproposed maturity by maturity bid. The user enters a coupon and price,or yield, for each principal maturity it wants to purchase. To determinethe yield associated with the price and coupon combination (or the priceassociated with their coupon and yield combination) without actuallysubmitting a bid, the user can click the “Calculate/Refresh” button 72,which calculates the yield (or price) without actually submitting it. Ifthe user submits a bid and it results in a yield lower than the “bestyield”, whether shown or not, for that maturity, the user may choose toclick the “Submit Bid” button 74 and become the new “Leader” with the“best yield” for that maturity (provided time remains before the auctionends). In a maturity by maturity auction only, if no other biddersubmits a better bid before the auction ends, then the leader becomesthe successful bidder or “Winner” of the auction for the relevantmaturity or maturities.

FIG. 11 illustrates a blank form upon which the user may prepare aproposed all-or-none bid. The user enters a coupon for each maturity andan aggregate purchase price 77, and at the Issuer's option, a price oryield for each maturity. To determine the true interest cost (TIC)associated with the aggregate purchase price 77 and coupons combinationwithout actually submitting a bid, the user can click the“Calculate/Refresh” button 72 which calculates the TIC without actuallysubmitting it. If the result is a TIC lower than the “best TIC” shown,if shown, the user may choose to click the “Submit Bid” button 74 andbecome the new “Leader” with the “best TIC” (provided time remainsbefore the auction ends). In an all-or-none auction only, if no otherbidder submits a better bid before the auction ends, then the leaderbecomes the successful bidder or “Winner” of the auction.

In a maturity by maturity versus all-or-none auction, FIGS. 10 and 11apply to maturity by maturity and all-or-none bidders, respectively. Theprocess of calculating and submitting bids is the same, but in thisformat, the best maturity by maturity TIC (i.e., the aggregate TICassociated with the best yields for each maturity submitted by one ormore bidders) is compared with the best all-or-none TIC (submitted byone bidder) and the lowest TIC of the two determines which bidder(s)is(are) the leader(s) or winner(s), during or once the auction is over,respectively.

The Calculate/Refresh 72 function is of great convenience. It can beimplemented either in spreadsheet mode (in which a calculate/refreshoperation is performed each time any entry is changed), or in delayedmode (in which calculate/refresh is performed only on demand by theuser). Additionally, the spreadsheet may display the last submitted bidin field 76, which displays to the user the last submitted bid by thatuser. In FIG. 10, field 76 is above a column that displays thisinformation without overwriting the remaining sections of thespreadsheet. The electronic spreadsheet is therefore adapted to displaythe users last submitted bid simultaneously with the bid information onthe spreadsheet. In another embodiment, the bid preparation andsubmission page 56 may optionally assist the user in optimizing his bid.

According to one embodiment of the invention, and at the option of theIssuer, if the user attempts to submit a bid which results in a higheryield than a bid it has already submitted which became the currentleading bid, it is linked to an error message page (not shown)indicating that the user is attempting to submit a bid which is worsethan one they have already submitted. At that point the user shouldclick the BACK button to return to the bid preparation and submissionpage 56.

Users may submit bids for one or more of the maturities listed or noneat all. If a user submits a bid which does not conform to thespecifications in the Notice of Sale (e.g., minimum/maximum price permaturity or coupon multiple parameters), it is linked to an errormessage page, an example of which is shown in FIG. 12, describing whichparameter is improper and instructing the user to click the BACK buttonto return to the bid preparation and submission page 56.

All bids must be submitted before the auction ends. The “Start” time,“End” time and current time or “Time of Last Update” may be shown at thetop of the bid preparation and submission page 56. Whenever users clickthe “Calculate/Refresh” button 72 or “Submit Bids” button 74, “Time ofLast Update” is updated to the current time so that the user can keeptrack of how much time remains before the auction ends. In analternative embodiment, “Time of Last Update” is updated automaticallyat brief intervals, for example, at one-second intervals.

After a user selects the submit button 74 and the bid is verified asconforming to the bid parameters, the bidder is presented with aconfirmation screen, an example of which is shown in FIG. 13, to confirmthe bid prior to submission. As shown in FIG. 13, a summary of the bidis presented to the user in this confirmation. If confirmed, the bidwill be electronically submitted to the auctioneer computer 10. Theconfirmation gives a safety check to users to help them avoid thesubmission of erroneous or undesired bids.

The bid preparation process and submission process described above issummarized in the flow chart in FIG. 3 b. Beginning with the bidpreparation and submission page 56, the user can select“calculate/update” 72, “submit bid” 74 or “retrieve bid” 76 as describedabove. Additionally the user may save a proposed bid at step 78 in whichcase the user is asked to name the file at step 80 for future recoveryof the bid. Previously saved proposed bids may be viewed by selecting“view bid” 82 in which case the user is prompted to identify the filecontaining the saved bid at 84 and the file is retrieved and displayedat step 86.

In selecting the calculate/update option 72 a check is made at step 88to determine if the calculation is meaningful in the context of thegiven auction. If the calculation is meaningful the displayed bid isupdated at step 90. If the calculation is not meaningful, the nature ofthe error is determined at step 92 and the bidder is informed of theerror with proposed corrections at step 94 unless the auction is over inwhich case the user is taken to the observation page at step 96. Theproposed corrections to an error in the bid will allow the user torestore a previous correct bid at step 98 or go back to allow the userto correct the current proposed bid at 100.

In a similar fashion to the calculation/update process, the submit bidprocess verifies that the bid to be submitted it meaningful and inaccordance with the appropriate predetermined bid parameters for thisauction at step 102. If an error is present in the bid, the error isexamined at step 104 in the same manner as step 92 of thecalculation/update process. Thereafter, the process proceeds with eitherstep 94 or 96 as discussed above. If the bid was valid at step 102, thenconfirmation is requested at step 106 wherein the user is displayed asummary of the bid prior to bid submission as described above. If thebid is confirmed by the user at step 108 it is submitted and recorded bythe auctioneer's computer 10 at step 110.

Returning to FIG. 3 a, the Observation mode 112 provides a special pagefor the Issuer and Issuer's financial advisor, or appropriate thirdparty observers, to view the auction in progress. It shows the selectedbid information of bids submitted. The observer can view a running listof best bids 114, individual bids 116 and cover (i.e., second place)bids 118. Such information may be displayed in a manner very similar tothat shown in FIG. 6. As with the observe results page 32, theinformation illustrated on the relevant pages 114, 116, and 118regarding the bids is predetermined before the auction. A particularIssuer may not wish to have all the bid information, such as non-winningbid histories, listed. The observation pages are updated throughout theauction by clicking the “Refresh” button. In an alternative embodiment,the observation pages are continuously updated. The observation page maybe automatically accessed by Issuer and Issuer's financial advisor when“Enter Auction” is clicked and after these users enter a special IDnumber and password at the login page 36. The observation mode 112 alsoaccommodates other requests of information stored in the database fromusers as schematically illustrated at element 120 in FIG. 3 a.

The Observation mode may show the true interest cost of individual bidswhen there are bids for every maturity in the issue and winning bids andcover bids. It also may show the “resized” principal maturity amountsthat coincide with the Notice of Sale parameters, the Issuer'sobjectives (e.g., level annual debt service), and a summary of all bidssubmitted by bidders.

The trial auction branch 38 leads to the login page 40 and averification page 124 which operate similar to the login page 36 andverification page 50, respectively, previously described except that thelogin page 40 allows any user to select whether they want to go to thetrial auction page 126 where they can practice bidding or theobservation page 112 where they can observe bids. The trial auction 126is one or more screens which simulate a real auction such that a biddercan become accustomed to the operating system without entering into anactual auction. From the trial auction page 126 the user is providedwith a plurality of options such as viewing various documents, returningto the home page, etc.

The Administration menu 128 is for use by the technical staff of theauctioneer to create, modify or terminate auctions, add or removebidders, allow user access to applicable pages (e.g., bidders to theauction page and Issuers to the observation page), and view auctions inprogress. The operation of the administration menu 128 is schematicallyillustrated in the flow chart of FIG. 3 c and two of the web pagesaccessible therefrom are shown in FIGS. 14 and 15. These pages may alsoshow the true interest cost of the winning bids and the resizedprincipal amounts as described above.

In FIG. 3 c, the administrator can list registrants at step 123,add/delete registrants at step 125, or modify registrant information atstep 127 as shown in FIG. 14. The administrator can view an ongoingauction at 129, release selected auction data for completed auctions atstep 130, create or modify up-coming auctions at step 132 as shown inFIG. 15, delete an auction at step 134, restart an auction at step 136,view and/or set permission parameters at step 138, and open/close trialauctions at step 140. In the viewing of the auction at 129, theadministrator may select best bids at 142, cover bids at 144, individualbids at 146, or a summary at 148 for viewing. In creating or modifyingupcoming auctions at step 132, the administrator may choose to create ormodify existing documents at 150 which will take him to the selecteddocument at step 152, or may choose to set and or change auctionparameters at 154 and/or maturity dates and amounts at 156.

At the end of an action, all winning bidders will automatically receivepreliminary e-mail confirmations of their winning bids and purchaseamounts (as resized), as well as a reminder that when the Issuer hasmade the formal award of bonds, they will receive another, final, e-mailconfirmation 130.

A bidders log is provided containing a record of every bid submitted byevery bidder during an auction. It identifies the bidder, the ID numberand password entered by the bidder, the responses by that bidder to thequestions on the verification page and the entries made by the bidderwhich were submitted as bids, whether winning bids or not.

Electronic mail (e-mail) confirmation is automatically generated tousers on the occurrence of selected events. When a registered bidderenters its ID number and password, an e-mail confirmation is immediatelysent to confirm the fact that they have entered an auction. If, forexample an impostor somehow succeeds in impersonating a bidder, thebidder will receive e-mail showing that the auctioneer believes thebidder has entered the auction. This serves as a cross-check forsecurity purposes.

The present invention provides several advantages over the prior artsuch as allowing bidders from around the world to participatesimultaneously in a real-time auction of an original issuer financialinstrument, providing bidders in an original issuer auction withcomputational tools, such as spreadsheets, with which to compose andcompute associated cost values with their bids, providing facilities forthe auctioneer in an original issuer auction to receive and evaluatebids in real-time, allowing for anonymity in silent real-time auctionsor full disclosure in open auctions, requiring submitted bids to bewithin the Issuer's parameters, and increasing the speed at whichbidders may bid so that the largest number of bids can be submittedprior to the close of an auction.

Following are further advantages of the present invention relating tooriginal issuer actions of financial instruments:

-   1. Replacing bidding by fax, personal delivery or other methods;-   2. Providing an integrated system running on a single server that:-   (a) allows bidders to prepare bids and submit them without    transcribing them or using extraneous commercial software or    equipment such as Bid Comp, Monroe Bond Calculators, Bond Buyer    Worksheets, interfaces, etc.;-   (b) enables issuers, financial advisors and third party observers to    view auctions in progress including selected bid information such as    winning bids and bidders;-   (c) may automatically send documentation in the form of electronic    confirmations of bidder admission to auction and winning bids;-   (d) may calculate true interest cost (TIC) of winning bid    combinations and resize issue without requiring the Issuer or    financial advisor to run separate software programs or customize    spreadsheet programs;-   (e) permits the auction administrator to create, modify and view    auctions in progress; and-   (f) provides one on-line location where the Notice of Sale and    Preliminary Official Statement (POS) can be viewed (and amended by    the Issuer) to assist bidders in preparing bids;-   3. Allowing primary offerings of municipal bonds to be conducted as    real-time auctions in which bidders can view selected bid    information such as the best bid for each maturity and are given the    opportunity to make a better offer while the auction is in progress;-   4. Obviating the need for special software or hardware installation    at the bidders', or Issuer's locations by allowing bidders and    Issuers to use any personal computer, any Internet service provider    and any web browser;-   5. Allowing bids to be submitted for selected bond maturities within    a new issue, rather than exclusively on an all-or-none basis;-   6. Allowing an auctioneer to conduct multiple auctions    simultaneously using the same web server and a single administrator,-   7. Allowing bidders to participate in a plurality of auctions    simultaneously or consecutively;-   8. Improving the security of auctions by providing bidders and other    parties that access bidding information with electronic signatures    via an identification number and password and to log all bids    submitted by each bidder throughout an auction;-   9. Obtaining electronic verification from bidders that they have    read and agree to certain legal documents associated with a bond    issue, retaining their responses in a log, and if they answer “no”    that they have not read the documents or do not agree with them,    denying such bidders access to the auction until they answer “yes”;-   10. Providing a bidder with automatic notification describing any    non-conforming entry via error messages when a bid does not conform    to the Issuer's specifications in a Notice of Sale;-   11. Providing a built-in official auction clock that keeps bidders    informed of time remaining before the auction ends; and-   12. Enabling bidders to recalculate and refresh a display of aspects    of their bids, including calculated yield or prices associated with    their entries before submitting them as formal bids.

The above described system is intended only to be illustrative of thepresent invention and not restrictive thereof. For example, oneanticipated operation of the present invention will be to conductall-or-none and maturity by maturity auctions for the same Issuer wherethe individual bidders status is not displayed to the bidder, but only adisplay of which maturities have not yet received a bid is presented tothe bidders during the auction as the selected bid information.Additionally the present invention may be designed to allow bids to beprepared by existing information services and have these loadable intothe present system through steps 84/86 shown in FIG. 3 b.

Another aspect of the present invention is that it allows appropriatethird parties to create and conduct auctions. If multiple separateadministrators are allowed then additional security may be added tolimit an administrator's access to only those auctions which it iscontrolling.

Further options of the present system may include:

-   1) Saving of bids prepared on the present system for later access    and retrieval by the bidder;-   2) Automatic ranking and rating of bids received to determine the    best bids, wherein numerically tied bids may be broken by the time    of receipt of the bids;-   3) Allowing institutional investors to view the contact information    for bidders who have requested access to a given auction;-   4) Having bidders select to submit bids at re-offering rates and    prices;-   5) Having the auctioneer identify whether a bidder's bid is priced    at yield to call or yield to maturity, as applicable;-   6) Having the calculations be moved to the client side to reduce the    hits on the home page server and increase bidder's privacy and    susceptibility to network delays; and-   7) Having bidders presented with the option of digitally signing    bids for security which would use known standard signature schemes    in either a separate or JAVA integrated utility.

It will be appreciated that although the embodiments described hereinrelate to financial instruments such as municipal bond auctions, thedisclosed process is applicable to many other types of auctions. Variousmodifications may be made to the present invention without departingfrom the spirit and scope thereof. It will be apparent to those skilledin the art how to adapt the present invention to variant types ofauctions. The scope of the present invention is to be defined by theappended claims.

1. A computer-mediated method of conducting an auction of a financial orlegal instrument over an electronic network, wherein bidders can be indifferent physical locations and can simultaneously participate in theauction, said bidders having access to networked devices, said bidders'networked devices communicating over the electronic network with atleast one computer having auction software, said method comprising: a)enforcing at least one condition bidders must satisfy to submitcompeting bids; b) enforcing at least one condition competing bids mustsatisfy; c) providing a centralized time indication; d) receiving, overthe network, bids from bidders using said networked devices; e) enablingbidders to modify their bid inputs; f) permitting comparison of receivedbids; and g) providing information allowing for display of at least thebest bid.
 2. The method of claim 1 including conducting multipleauctions simultaneously.
 3. The method of claim 1 including offeringmultiple instruments in the same auction.
 4. The method of claim 1wherein bidders may participate in a plurality of auctionssimultaneously.
 5. The method of claim 1 wherein bidders may bid morethan one instrument in the same auction.
 6. The method of claim 1wherein bidders may bid more than one instrument in multiple auctionsconducted simultaneously.
 7. The method of claim 1 wherein bidders maybid portions of a single instrument.
 8. The method of claim 1 whereinbidders register before submitting bids.
 9. The method of claim 1wherein bidders log in with an identification and password.
 10. Themethod of claim 1 including providing bidders online access to offeringdocuments.
 11. The method of claim 1 including providing a display thatinforms bidders of the time remaining in a bidding period.
 12. Themethod of claim 1 wherein a bid improvement is made by submitting alower bid.
 13. The method of claim 1 wherein bid improvements are madein minimum increments.
 14. The method of claim 1 wherein the lowest bidis the best bid.
 15. The method of claim 1 including enabling bidders tosupply conditions to their bids.
 16. The method of claim 1 includingenabling a bidder to enter and modify a bid without submitting it. 17.The method of claim 1 including enabling a bidder to confirm oracknowledge a bid after submission.
 18. The method of claim 1 includingenabling a bidder to view at least the best bid during the biddingperiod and improve it.
 19. The method of claim 1 wherein rank order ofbids is displayed.
 20. The method of claim 1 wherein status of abidder's bid relative to other bids is displayed during the biddingperiod.
 21. The method of claim 1 further including providing a meansfor bidders to confirm their intention to submit bids before their bidsare treated as submitted.
 22. The method of claim 1 further includingperforming, for bidders, calculations using bid related inputs.
 23. Themethod of claim 1 wherein the bidding period may be extended afterbidding begins.
 24. The method of claim 1 wherein information related toat least one bid submission such as time of submission is saved in adata log.
 25. The method of claim 1 further including displaying anobservation page from which to observe submitted bids.
 26. The method ofclaim 1 further including releasing bidding results.
 27. The method ofclaim 1 wherein confirmation of winning bids may be deliveredelectronically.
 28. The method of claim 1 wherein confirmation ofwinning bids may be delivered automatically.
 29. The method of claim 1wherein said bidder inputs a price for said instrument.
 30. The methodof claim 1 wherein said bidder inputs an interest rate for saidinstrument.
 31. The method of claim 1 wherein said bidder inputs a priceand interest rate combination for said instrument.
 32. The method ofclaim 1 wherein said bidder inputs a principal amount for saidinstrument.
 33. The method of claim 1 wherein said bidder inputs amaturity date for said instrument.
 34. The method of claim 1 whereinsoftware such as Java applet code or plug-ins that implement certainauction related functions is delivered to bidders computers.
 35. Themethod of claim 1 wherein one or more menu-driven web pages are employedto create and modify auction parameters.
 36. The method of claim 1wherein one or more menu-driven web pages are employed to regulateaccess to certain web pages.
 37. The method of claim 1 wherein one ormore menu-driven web pages are employed to authorize bidderparticipation.
 38. The method of claim 1 wherein one or more menu-drivenweb pages are employed to set bid limitations for one or more bidders.39. The method of claim 1 further including communicating signalsrelating to said auction over a network at least in part using HypertextTransfer Protocol
 40. The method of claim 1 further including notallowing bidders to change said auction rules once bidding commences.41. In a computer system for conducting an auction of at least onefinancial or legal instrument over an electronic network, said computersystem being configured to receive bids from bidders over the electronicnetwork, wherein bidders can simultaneously participate in auctions fromdifferent physical locations, said computer system executing auctionsoftware stored on a storage device, said storage device storing: first,instructions that, when executed, receive bids over the electronicnetwork for at least one instrument from bidders using networkeddevices; second, instructions that, when executed, enforce at least onecondition bidders must satisfy before they can submit competing bids;third, instructions that, when executed, enforce at least one conditioncompeting bids must satisfy; fourth, instructions that, when executed,provide a centralized time indication; fifth, instructions that, whenexecuted, enable bidders to modify their bids; sixth, instructions that,when executed, permit comparison of received bids to facilitatedetermination of winning bids; and seventh, instructions that, whenexecuted, provide information allowing for display of winning bids. 42.A computer system for mediating an auction of at least one financial orlegal instrument, said computer system being configured to receive bidsfrom bidders using web browsers, wherein the bidders can be in differentphysical locations and can simultaneously participate in the auction,said computer system comprising: means for enforcing at least onecondition bidders must satisfy to submit competing bids; means forenforcing at least one condition competing bids must satisfy; means forprovide a centralized time indication; means for receiving, over theInternet, bids from bidders using web browsers; means for enablingbidders to modify their bid inputs; means for permitting comparison ofreceived bids; and means for providing information allowing for displayof at least the best bid.
 43. In an electronic auction system includingan issuer's computer having a display and at least one bidder's computerhaving an input device and a display, said bidder's computer beinglocated remotely from said issuer's computer, said computers beingcoupled to at least one electronic network for communicating datamessages between said computers, an electronic auctioning process forauctioning fixed income financial instruments comprising: (a) permittingdata inputs associated with at least one bid for at least one fixedincome financial instrument from said bidder's computer; (b)automatically computing at least one interest cost value based at leastin part on said received data, said automatically computed interest costvalue specifying a rate representing borrowing cost associated with saidat least one fixed income financial instrument; (c) receiving said bidsubmitted by transmission of at least some data from said bidder'scomputer over said at least one electronic network; and (d)communicating at least one message associated with said submitted bid tosaid issuer's computer over said at least one electronic network, thus(e) enabling the display on said issuer's computer of informationassociated with said bid including said computed interest cost value,additionally comprising the step of verifying that each bid is inconformance with predetermined bid parameters before accepting said bid,wherein said process further includes providing a centralized timeindication and transmitting said time indication to said bidder'scomputer over said electronic network, and said display enabling stepincludes the step of enabling display of said transmitted timeindication on said bidder's computer display.
 44. The process of claim43 wherein at least one of the permitting data inputs step (a), theautomatically computing step (b), the bid receiving step (c), thecommunicating step (d) and the enabling step (e) is performed using aweb browser.
 45. An electronic auction system for auctioning fixedincome financial instruments, said electronic auction system comprisingan auction computer for use with: (1) an issuer's computer having adisplay; (2) at least one bidder's computer having an input device and adisplay, said bidder's computer being located remotely from saidissuer's computer, and (3) at least one electronic network, saidcomputers being coupled to said at least one electronic network forcommunicating data messages between said computers, said auctioncomputer executing auction software and configured to: (a) permit datainputs associated with at least one bid for at least one fixed incomefinancial instrument from said bidder's computer; (b) automaticallycompute at least one interest cost value based at least in part on saidreceived data, said automatically computed interest cost valuespecifying a rate representing borrowing cost associated with said atleast one fixed income financial instrument; (c) receive said bidsubmitted by transmission of at least some data from said bidder'scomputer over said at least one electronic network; (d) communicate atleast one message associated with said submitted bid to said issuer'scomputer over said at least one electronic network, thus (e) enablingthe display on said issuer's computer of information associated withsaid bid including said computed interest cost value, (f) verify thateach bid is in conformance with predetermined bid parameters beforeaccepting said bid, and (g) provide a centralized time indication andtransmit said time indication to said bidder's computer over saidelectronic network, thereby enabling display of said transmitted timeindication on said bidder's computer display.
 46. The system of claim 45wherein said auction computer is further configured to use a webbrowser.
 47. In an electronic auction system including plural bidders'computers and an issuer's computer located remotely from said pluralbidders' computers, each of said plural bidders' computers including anassociated input device and a display, said issuer's computer includinga display, at least one electronic network communicating data messagesto and from said plural bidders' computers and to and from said issuer'scomputer, an electronic auctioning process for auctioning fixed incomefinancial instruments comprising: receiving data from at least one ofsaid plural bidders' computers associated with at least one bid forfixed income financial instruments; automatically computing at least oneinterest cost value based at least in part on said inputted data, saidautomatically computed interest cost value specifying a raterepresenting borrowing cost associated with said fixed income financialinstruments; ordering the interest cost values associated with saidinputted data; transmitting said interest cost values over said at leastone electronic network to said issuer's computer; and enabling thedisplay of said interest cost values on said issuer's computer'sdisplay, wherein said ordering step includes ranking said interest costvalues, and said displaying step includes displaying said interest costvalues in an order determined by said ranking.
 48. The process of claim47 wherein at least one of the receiving step, the automaticallycomputing step, the ordering step, the transmitting step and theenabling step is performed using a web browser.
 49. In an electronicauction system for auctioning fixed income financial instrumentscomprising: plural bidders' computers, an issuer's computer locatedremotely from said plural bidders' computers, each of said pluralbidders' computers including an associated input device and a display,said issuer's computer including a display, and at least one electronicnetwork communicating data messages to and from said plural bidders'computers and to and from said issuer's computer, an electronicauctioning process, an auction computer coupled to said electronicnetwork, said auction computer being configured to: (a) receive datafrom at least one of said plural bidders' computers associated with atleast one bid for fixed income financial instruments; (b) automaticallycompute at least one interest cost value based at least in part on saidinputted data, said automatically computed interest cost valuespecifying a rate representing borrowing cost associated with said fixedincome financial instruments; (c) order the interest cost valuesassociated with said inputted data; (d) transmit said interest costvalues over said at least one electronic network to said issuer'scomputer; and (e) enable the display of said interest cost values onsaid issuer's computer's display, wherein said auction computer isfurther programmed to rank said interest cost values, and to enabledisplay of said interest cost values in an order determined by saidranking.
 50. The system of claim 49 wherein said auction computer isfurther configured to use a web browser.
 51. In an electronic auctionsystem including plural bidders' computers and an issuer's computerlocated remotely from said plural bidders' computers, each of saidplural bidders' computers including an associated input device and adisplay, said issuer's computer including a display, at least oneelectronic network communicating data messages to and from said pluralbidders' computers and to and from said issuer's computer, an electronicauctioning process for auctioning fixed income financial instrumentscomprising: receiving data from at least one of said plural bidders'computers associated with at least one bid for fixed income financialinstruments; automatically computing at least one interest cost valuebased at least in part on said inputted data, said automaticallycomputed interest cost value specifying a rate representing borrowingcost associated with said fixed income financial instruments; orderingthe interest cost values associated with said inputted data;transmitting said interest cost values over said at least one electronicnetwork to said issuer's computer; and enabling the display of saidinterest cost values on said issuer's computer's display, wherein saidprocess further includes providing a centralized time indication andtransmitting said time indication to each of said plural bidders'computers over said electronic network, and said process furtherincludes enabling display of said transmitted time indication on each ofsaid plural bidders' computer displays.
 52. The process of claim 51wherein at least one of the receiving step, the automatically computingstep, the ordering step, the transmitting step and the enabling step isperformed using a web browser.
 53. In an electronic auction system forauctioning fixed income financial instruments comprising: pluralbidders' computers, an issuer's computer located remotely from saidplural bidders' computers, each of said plural bidders' computersincluding an associated input device and a display, said issuer'scomputer including a display, and at least one electronic networkcommunicating data messages to and from said plural bidders' computersand to and from said issuer's computer, an electronic auctioningprocess, an auction computer coupled to said electronic network, saidauction computer being configured to: (a) receive data from at least oneof said plural bidders' computers associated with at least one bid forfixed income financial instruments; (b) automatically compute at leastone interest cost value based at least in part on said inputted data,said automatically computed interest cost value specifying a raterepresenting borrowing cost associated with said fixed income financialinstruments; (c) order the interest cost values associated with saidinputted data; (d) transmit said interest cost values over said at leastone electronic network to said issuer's computer; and (e) enable thedisplay of said interest cost values on said issuer's computer'sdisplay, wherein said auction computer is further configured to providea centralized time indication and transmit said time indication to eachof said plural bidders' computers over said electronic network, therebyenabling display of said transmitted time indication on each of saidplural bidders' computer displays.
 54. The system of claim 53 whereinsaid auction computer is further configured to use a web browser.